Buy now, pay later companies are constantly listening to the consumer — from expanding reach to investing in what matters most.
Having already made its commitment toward creating a more sustainable future, including various Earth Week initiatives and its CO2 tracker, Klarna has announced it is doubling down, investing $1.7 million from its internal carbon tax in sustainability projects for maximum long-term climate impact.
The investment will go into sponsoring four projects aimed at removing 11,587 metric tonnes of CO2 equivalents by 2030. This is the equivalent of the electricity consumption of more than 2,000 households per year. Klarna worked with strategic partner, Milkywire, to select its four initiatives to choose those that would be “the most innovative, effective in permanently removing carbon emissions, impactful, scalable and with great co-benefits for people and nature.”
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“We’re proud to join forces with four pioneers in the carbon removal space to help permanently remove CO2 emissions from the atmosphere and mitigate the worst consequences of the climate crisis,” said Salah Said, head of sustainability at Klarna. “Our objective is to create as much impact per dollar as possible and to be part of the solution to the climate crisis.”
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The remaining $700,000 will be invested in the Climate Transformation Fund, the fund run by Milkywire, which serves to find and support a wide range of projects addressing the climate crisis.
Meanwhile, Klarna is not the only BNPL creating new partnerships. Afterpay has announced it has partnered with Sephora to offer consumers its flexible payment options both in-store and online. Afterpay said in a statement that the partnership “underscores both brands’ commitment to addressing their consumers’ needs.”
“Customers search for Sephora on our Shop Directory App every two minutes and it ranks among one of our most requested retailers with U.S. consumers,” said Alex Fisher, head of sales, North America at Afterpay and Cash App. “We are thrilled to service this demand and provide more customers access to Sephora’s curated selection of premium products with the flexibility and convenience of using Afterpay online and at their local Sephora store.”
Moreover, Carolyn Bojanowski, senior vice president and general manager of e-commerce at Sephora, said the partnership with Afterpay is a natural fit given the companies’ shared ethos. Afterpay will also expand to Sephora Canada, later this year.
Notably, Sephora also offers its consumers BNPL through Klarna, marking a new phase in the space as retailers begin offering more than one flexible payment option.
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